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A packaging manufacturer is offering three product lines of boxes: small, large and customized boxes. The statement of operating income for the recent period
A packaging manufacturer is offering three product lines of boxes: small, large and customized boxes. The statement of operating income for the recent period is shown below, no changes in inventory occurred. Sales: $125,000 Cost of Goods Sold: $44,400 Direct Material: $19,800 Indirect Production Costs: $24,600 Selling and Administrative Expenses: $25,800 Commissions: $10,800 Administrative Salaries: $15,000 Operating Income: $54,800 The company uses a traditional cost accounting system. The operating data used in the cost accounting system are as follows: Small Boxes Big Boxes Customized Boxes Material Costs $12,000 $6,500 $1,300 Commissions $6,000 $4,000 $800 Machine Hours 525 h 210 h 1360 h Quantity Sold 16,000 4,000 1,400 Price per Product $4 $10 $15 Indirect production costs are distributed in proportion to machine hours. Administrative salaries are distributed in proportion to sales revenue. For the following results, please do enter only integers, i.e. only whole numbers are asked. How high are the determined indirect production costs for the product line Customized Boxes? How high is the determined operating income (loss) for the product line Customized Boxes?
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